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By Jeanne C. Arnold

June 22, 2018

Forget what you’ve heard about artificial intelligence (AI), Tom Eck, chief technology officer for IBM industry platforms, told the crowd at ICI’s 60th annual General Membership Meeting, held last month in Washington, DC. Despite its depiction sometimes in popular culture as a malevolent force, he said, there is nothing to fear from the technology, which happens to hold great potential for the registered fund industry.

This Isn’t Skynet

“I know many people are scared of AI, but there’s nothing scary about it. We’re not going to see Skynet anytime soon,” Eck said, referencing the man-made AI system that ultimately battles the human race in the Terminator movie franchise. “AI is essentially based on probabilities,” he explained—that is, it uses evidence to determine the likelihood of a future outcome.

Machine learning is an aspect of AI that often is just as feared, Eck explained, thanks to the idea that machines could become smarter than humans and ultimately pose a danger to them. But he clarified that machine learning simply means that “an AI algorithm’s predictive ability gets better over time.”

He further explained that there are many types of machine learning, including supervised learning, where a researcher gives an AI algorithm a set of information and a set of answers. “For example, [a researcher] shows a picture of a banana and tells the algorithm it’s a banana, or she does the same with an automobile. And she’ll continue this way with millions of images and labels.” Self-driving cars are a great example of supervised learning at work, Eck pointed out, because “self-driving is all about image recognition.”

The Perfect Storm

Though AI has been around since the 1950s, Eck noted, we’re hearing about it now more than ever because of advancements in areas like data, algorithms, and hardware. “Consider the amount of data that we have online—the volume of images, video, and text, which has enabled better image recognition and supervised learning. Or think about the hardware that is available today versus 20 years ago,” he added. The advancements in these two areas—as well as the tremendous improvement in algorithms—has driven “a quantum leap in AI within the last decade.”

“We have a perfect storm happening—in a good way,” Eck said. More people can develop and use algorithms thanks to greater access to education and open-source platforms, he explained, while algorithms are becoming more powerful, faster, accurate, and easier to use. “Every dimension of AI is improving, and the complexity of implementing AI is decreasing. So, it’s easier and more viable for different industries to take advantage of AI’s potential,” he concluded.

Potential Value for Asset Management

So, how can funds and asset managers put AI to work for them? “I wouldn’t suggest setting up your own AI shop,” Eck told the audience. “It would be easier to leverage existing AI services by having your IT team integrate them into your systems.” Numerous services offer AI models that provide speech, text, or image recognition, or that can make predictions based off a given data set, he explained.

For example, Eck said, “perhaps a portfolio manager wants to set up a daily report that runs overnight and shows all the regulatory and business insights that the manager will need to act on the next day.” Or maybe an analyst wants to “predict the price of a certain equity, or whether crude oil will go up or down.” AI could perform either of those tasks, and could bring a lot of value to the fund industry, Eck concluded. “Firms just have to remember that it’s not scary.”

Young Leaders Reflect on Building a Better Business

By Christina Kilroy

June 21, 2018

Emerging leaders in the asset management industry are at the forefront of changes that will fundamentally affect the business—from technology, to client expectations, to how to attract and retain top talent. During a panel at ICI’s Operations and Technology Conference, held concurrently with the 60th annual General Membership Meeting, three such leaders explored how their firms are rethinking legacy processes and moving into the future....

By Jeanne C. Arnold

June 19, 2018

Serving investors is at the heart of asset management. Yet in today’s technology-driven world, in which personalized services and experiences dominate everything from banking to shopping, asset managers are having to rethink how to best meet the evolving needs of investors and advisers.

During the opening session of ICI’s 60th annual General Membership Meeting, held this year from May 22–24, a group of industry experts took to the stage to discuss the future of the fund industry—and to explain why simply delivering returns is no longer enough....

How Astronaut Jerry Linenger Found Strength, Perspective During His 132 Days in Space

By Candice Gullett

June 14, 2018

Captain Jerry Linenger has been around the world more than a few times—literally. As a retired US Navy flight surgeon and NASA astronaut posted on Russian space station Mir, he’s seen it all. But you don’t have to go in to space to benefit from Linenger’s insight—he had plenty of wisdom to share with attendees of ICI’s 60th annual General Membership Meeting (GMM), held in Washington, DC, from May 22–24.

Amy Herman Makes Order out of Chaos with the Art of Perception

By Melanie Cohen

Art might not be the first topic that comes to mind when discussing the mutual fund industry, but lawyer and art historian Amy Herman showed that there is a connection to be found after all.

Addressing attendees at ICI’s recent Operations and Technology Conference, held concurrently with ICI’s General Membership Meeting in Washington, DC, from May 22–24, Herman explained that analyzing art requires stepping in closely and asking questions from every angle—a style of observation that also is important for the fund industry…

Artificial Intelligence Offers Opportunity for Funds and Investors

By Miriam Bridges

June 7, 2018

What’s the future of the financial services workforce and artificial intelligence (AI)? Adam Broun, president and COO of Kensho Technologies, believes that AI will help human beings become better at what they do. “We’re not replacing humans yet in any meaningful way; we’re making people more effective and efficient in what they’re doing,” Broun told the audience at ICI’s annual Operations and Technology Conference, held concurrently with the General Membership Meeting on May 22–24 in Washington, DC.

Kicking off the session, Broun described how Kensho developed its “new economy” indexes and how AI comes into play...

For Good Cybersecurity, Keep Your Eye on the Basics, Says Fidelity’s Chad Renfro

By Todd Bernhardt

June 5, 2018

The computer breaches and hacks that make headlines are typically massive and complicated, and this can lead to the belief that information security solutions must be similarly complex.

But—as Chad Renfro, head of enterprise cybersecurity at Fidelity Investments, told a capacity audience at ICI’s recent General Membership Meeting—good cybersecurity doesn’t have to be complicated or expensive. Instead, he said, companies that make “strategic, optimized investments in cybersecurity” and that focus on the fundamentals can drastically reduce the amount of risk facing their firm…

By Rob Elson

May 31, 2018

A panel of four leading women in asset management took the stage at ICI’s 60th annual General Membership Meeting last week to share their insights on market outlooks, industry trends, and gender diversity....

By Rachel McTague

May 24, 2018

SEC Commissioner Michael Piwowar responded with candor to questions posed by ICI President and CEO Paul Schott Stevens during a lively discussion at the final day of ICI’s General Membership Meeting. Piwowar’s announced July 7 departure from the agency offered the outspoken commissioner the opportunity to reflect on fund regulation during his five-year tenure....

By Rob Elson

May 23, 2018

A lunchtime crowd of nearly 1,500 at ICI’s 60th annual General Membership Meeting sat rapt as Pulitzer Prize–winning author and presidential historian Jon Meacham dove deep into what he sees as three virtues that have defined America’s best eras, and that are “essential to any given hour in the republic, both at the top—and for all of us.”

Today’s divisive, contentious environment threatens those virtues, Meacham said, but not because of the division and contention themselves, which he said have been part of America and its system of government from the beginning...

The Carlyle Group’s David M. Rubenstein: Expanding Horizons, Doing What He Loves

By Miriam Bridges

May 23, 2018

“It’s the rate of return. Everything is the rate of return,” said David M. Rubenstein, cofounder and co-executive chairman of The Carlyle Group, summing up what has fueled the growth and success of the modern private equity business.

Morgan Stanley’s James Gorman Builds Pride from the Inside Out

By Todd Bernhardt

May 22, 2018

A mental model that James Gorman uses in his role as chairman and CEO of Morgan Stanley involves viewing the world as a series of concentric circles: the innermost circle represents the firm itself, while the subsequent circles represent the industry, the economy, and the political environment that a firm operates within. To succeed, one must build an understanding and mastery of each circle. Only then can one move back toward the middle.

Industry Leaders Highlight Opportunities Presented by Industry Change

By Miriam Bridges

June 1, 2017

Shifts in demographics, regulation, investor preferences, and new product offerings are creating a range of opportunities for the asset management industry. In conversations exploring these evolving trends, industry leaders offered their perspectives on how to succeed in these new environments during two insightful sessions on the second day of ICI’s 59th General Membership Meeting, held May 3–5 in Washington, DC.

Geopolitics and Global Business: What the Future Holds

By Jeanne C. Arnold

May 31, 2017

The challenges of navigating geopolitical developments while operating a global business took center stage during two key sessions at ICI’s 59th General Member Meeting (GMM), held in Washington, DC, from May 3 to 5.

A Tech-Enabled Future—and Present—for Investment Advice

By Rob Elson

May 30, 2017

The future of investment advice will lie at the intersection of technology and humanity, said panelists at ICI’s 2017 General Membership Meeting. But those panelists—Eli Broverman, cofounder of Betterment; Kelly Coffey, CEO at JP Morgan’s US Private Bank; and Ben Huneke, head of investment solutions at Morgan Stanley Wealth Management—offered differing views on how much of a role people will play.

Top Investment Strategists Sound Optimistic Notes amid Headwinds

By Rob Elson

May 25, 2017

Opportunities abound in today’s market and macroeconomic environment, and it’s up to fund managers to help their investors capitalize on them. That’s the outlook from a panel of world-class investment strategists sharing their insights at ICI’s 59th annual General Membership Meeting, held earlier this month in Washington, DC.

Stevens Calls for Measures to Enhance Economic Growth

By Rachel McTague

May 5, 2017

With America striving to achieve greater economic growth, Paul Schott Stevens, ICI president and CEO, called on the Securities and Exchange Commission (SEC) to enhance funds’ essential role in the capital markets by proposing new rules to govern funds’ use of derivatives and by creating a harmonized best-interest standard for advisers providing investment advice to retail and retirement investors. The ICI chief also urged the SEC to adopt a fund disclosure regime for the 21st century.

Jeff Immelt and GE’s Bid to Own the Future

By Rob Elson

May 4, 2017

“I just couldn’t explain why we owned NBC.”

In only eight words, GE’s Jeff Immelt summed up one of the major catalysts for his transformation of the company during his nearly 16 years as president and CEO. His enlightening, lighthearted conversation with ICI President and CEO Paul Schott Stevens at ICI’s 59th Annual General Membership Meeting—which began yesterday in Washington, DC—dove deep into Immelt’s thinking behind this transformation, the company’s major decisions during his tenure, and his big plans for the company’s future.

By Todd Bernhardt

May 3, 2017

When General Stanley McChrystal took over the Joint Special Operations Command (JSOC) in 2003, he was fully steeped in the US Army’s command-and-control philosophy. But he soon learned the need for adaptation. At the 59th annual General Membership Meeting, the retired general spoke of the importance of service, connection, and flexibility.

Industry Operations Leaders Address Needs of Investors and Advisers

By Candice Gullett

June 6, 2016

In conversations exploring regulation, demographics, and technology, industry leaders offered their perspectives on serving investors and advisers in an evolving world at ICI’s annual Operations and Technology Conference, held concurrently with the General Membership Meeting on May 18–20 in Washington, DC.

Industry Leaders Address Changing Industry Terrain

By Miriam Bridges

June 3, 2016

Will fund industry leaders need to rethink their traditional operating models? Experts shared their views on this question and others, as well as the opportunities presented by a rapidly changing industry, in a candid discussion on the second day of ICI’s 58th General Membership Meeting, held May 18–20 in Washington, DC.

Conducting Business in a Rapidly Changing World

By Jeanne Arnold

June 1, 2016

The global operating environment is evolving and it is critical for corporations to understand the changes afoot if they are to succeed in the 21st century, said Kevin Kajiwara, co-president of Teneo Intelligence, a division of global advisory firm Teneo. Speaking on the final day at ICI’s 58th General Membership Meeting (GMM), Kajiwara gave an overview of the economic and political shifts taking place around the world during his session, “Geopolitical Risks and the Global Economy.” After the overview, he engaged in an insightful question-and-answer session with Tom Faust, chairman and CEO of Eaton Vance Corp.

Ops Leaders Extol the Transformational Power of Data and Analytics

By Todd Bernhardt

May 26, 2016

The evolution of fund companies’ ability to gather and analyze data is creating a revolution in the way that those companies serve their customers, said panelists at “Big Data Initiatives and the Power of the Cloud,” the session that kicked off ICI’s Operations and Technology Conference on May 19 in Washington, DC.

The SEC’s Historic Success: Six Key Ingredients

By Paul Schott Stevens

May 20, 2016

This ICI Viewpoints is adapted from ICI President and CEO Paul Schott Stevens’s introduction for SEC Chair Mary Jo White at the 2016 ICI General Membership Meeting on May 20.

More than 80 years have passed since Congress—looking to restore public confidence in markets at the height of the Great Depression—established the U.S. Securities and Exchange Commission (SEC) to administer the federal securities laws enacted as part of President Franklin D. Roosevelt’s New Deal.

By Rachel McTague

May 20, 2016

The U.S. Securities and Exchange Commission (SEC) is contemplating several new initiatives governing registered funds, in addition to adopting rules this year on reporting modernization, liquidity management, and the use of derivatives, SEC Chair Mary Jo White announced at the opening session on the final day of ICI’s annual General Membership Meeting (GMM).

Walter Isaacson: Where Art Meets Science

By Rob Elson

May 19, 2016

Our world’s greatest innovations, according to Walter Isaacson, can be traced to “people who truly have a sense of what it is to be human…but also feel very comfortable with science and technology, and can make the connection.” And he’s got the evidence to back this belief up.

GMM Policy Forum: Michael Bloomberg and the Focus on Value

By Todd Bernhardt

May 18, 2016

Businesses and people can both prosper if they focus on providing a service that is unique and that has real value, said Michael R. Bloomberg at ICI’s 58th Annual General Membership Meeting (GMM) today. The noted entrepreneur, philanthropist, and three-term mayor of New York City covered a wide range of topics in a lively back-and-forth with ICI President and CEO Paul Schott Stevens during the meeting’s opening Policy Forum, attended by about 1,500 fund industry leaders.

Cybersecurity: Managing Risk in an Increasingly Connected World

By Todd Bernhardt

June 12, 2015

It’s increasingly obvious that we live in a world where cyber threats are evolving quickly and will remain persistent. But though such risks can never be eliminated, they can be managed, said panelists at ICI’s Operations and Technology Conference, held in conjunction with the Institute’s General Membership Meeting May 6–8 in Washington, DC.

Facing the Future: A Conversation with Former Chairmen

By Candice Gullett

June 11, 2015

On the second day of ICI’s annual General Membership Meeting (GMM), held May 6–8 in Washington, DC, three former ICI chairmen sat down with current ICI President and CEO Paul Schott Stevens to share the lessons they learned over the course of their careers, as well as during their years of service as volunteer leaders at ICI.

By Jeanne C. Arnold

June 9, 2015

There is a great opportunity for capital markets to develop all over the world, presenting a huge opportunity for the mutual fund industry, according to David Wright, secretary general of the International Organization of Securities Commissions (IOSCO).

Fresh Perspectives on a Changing World

By Miriam Bridges

May 29, 2015

Implications of globalization, the impact of the Millennial Generation on product development, the search for alpha in a world full of passive products—these were among the top priorities and concerns of the fund industry discussed by a panel of industry leaders at ICI’s 57th annual General Membership Meeting (GMM), held May 6–8 in Washington, DC.

SEC Chair White Affirms Agency Has Tools to Address Risks in Industry

By Rachel McTague

May 8, 2015

The U.S. Securities and Exchange Commission (SEC) has the tools it needs to address systemic risks to the extent they exist in the asset management industry, said SEC Chair Mary Jo White at the opening session on the final day of ICI’s annual General Membership Meeting (GMM). White also announced that David Grim—who had been serving as acting director of the SEC’s Division of Investment Management—has just been named director of the division. White said she is thrilled that Grim, a 20-year veteran of the SEC in the investment management area, is taking the reins at a time when the Commission is moving forward to implement proactive regulations for the industry.

Nooyi’s Purpose, Pepsi’s Performance

By Rob Elson

May 7, 2015

We all have a moral compass. But for PepsiCo’s Indra Nooyi, “the moral compass of our lives must also be the moral compass of our livelihoods.”

Stirring words from the company’s chair and chief executive—and just a few of the many she delivered in a lively Q&A with Vanguard Chairman and CEO Bill McNabb at ICI’s 57th General Membership Meeting, which began yesterday in Washington, DC.

GMM Policy Forum: “It Always Comes Down to Trust”

By Todd Bernhardt

May 6, 2015

Over the 75-year history of the modern mutual fund industry, funds have helped to democratize investing, providing a tremendous array of investing options at a reasonable cost for millions of people. And given rapid advances in technology and the efficiencies that they can bring, the future looks even brighter, said Walter W. Bettinger II at the opening session of ICI’s 57th General Membership Meeting (GMM).

By Miriam Bridges

June 9, 2014

In conversations exploring outcome-oriented investing, the globalization of the fund industry, and the next generation of retirement plans, industry leaders offered their perspectives on serving investors in an evolving world during several insightful sessions at ICI’s annual General Membership Meeting, held in Washington May 20–22.

Adapting to the Rapidly Evolving Cybersecurity Environment

By Todd Bernhardt

June 6, 2014

Because external hackers typically try to “look like an insider” when attempting to penetrate IT systems, “every cyberattack is likely an ‘internal’ attack,” according to Mark Clancy, managing director of technology risk management at the Depository Trust & Clearing Corporation (DTCC).

Now Off the Hill, Senator Snowe Still Brimming with Ideas, Advice

By Rob Elson

June 5, 2014

U.S. policy is ripe for reform in a number of key areas, but changes to ease the polarized political environment must come first, former U.S. senator Olympia Snowe (R-ME) told the crowd during the final session of ICI’s 56th annual General Membership Meeting (GMM), held May 20–22 in Washington, DC.

Industry Leaders Reflect on Serving Investors in an Evolving World

By Christina Kilroy

June 4, 2014

Speaking on the Leadership Panel held Wednesday, May 21, at ICI’s General Membership Meeting (GMM), fund industry leaders agreed that challenges as well as opportunities abound for their businesses in today’s complex world.

By Rachel McTague

May 22, 2014

Securities and Exchange Commission (SEC) Chair Mary Jo White today called for the U.S. Financial Stability Oversight Council (FSOC) to use outside expertise to the degree necessary in its process of designating systemically important financial institutions (SIFIs). She asserted that it is “enormously important for FSOC, before it makes any decision of any kind, to make sure it has the necessary expertise on any of those issues.”

By Rob Elson

May 21, 2014

Challenges abound in our increasingly global world, said Tony Blair, former prime minister of the United Kingdom. Yet our future could be brighter than ever, he insisted.

Blair’s stirring words came during a keynote speech at ICI’s 56th General Membership Meeting (GMM). After his opening remarks, Blair sat down with ICI Chairman Bill McNabb, Chairman and CEO of The Vanguard Group, to discuss a range of issues. The session headlined the three-day meeting, which began yesterday in Washington, DC.

By Todd Bernhardt

May 21, 2014

The fund industry needs to stop focusing on the moment and start focusing on outcomes when advising investors on their resources, said Laurence D. Fink, chairman and CEO of BlackRock, at ICI’s Annual Policy Forum, part of the Institute’s 56th General Membership Meeting (GMM).

By Todd Bernhardt

GMM Panelists Discuss Retirement Savings and Financial Education

By Miriam Bridges

May 17, 2013

Americans need greater access to savings vehicles and better financial education to help ensure that they use them effectively, fund industry experts told attendees at the 55th Annual General Membership Meeting.

GMM Panelists Share Tips on Strengthening Cybersecurity

By Andrew Gillies

May 7, 2013

Cybersecurity gained prominence as a topic of discussion at ICI’s General Membership Meeting (GMM), held last week in Washington, DC. “Hugely important,” said Mary John Miller, the Treasury Department’s under secretary for domestic finance, in her GMM remarks.

By Rachel McTague

May 3, 2013

In a speech at ICI’s General Membership Meeting today, Securities and Exchange Commission (SEC) Chairman Mary Jo White highlighted the myriad ways that the SEC, in light of an increasingly global regulatory environment, pursues its mission to protect U.S. investors and markets and to promote capital formation.

By Andrew T. Gillies

GMM Policy Forum

By Andrew T. Gillies

May 1, 2013

Addressing America’s fiscal challenges will require both raising revenue and cutting government spending, said Mary John Miller, the U.S. Treasury Department’s Under Secretary for Domestic Finance, at the Policy Forum of ICI’s 55th annual General Membership Meeting (GMM).